The global energy sector is preparing for short-term instability driven by geopolitical and economic uncertainty, but maintains a positive long-term outlook underpinned by structural trends such as electrification, decarbonisation and technological progress, according to DNV’s latest Energy Industry Insights survey.
The report, based on responses from over 1,100 senior energy professionals, identified political risk as the top barrier to growth in the year ahead. Confidence in the pace of the energy transition has declined, with only 55% of respondents saying it is accelerating—down from 72% in 2023 and 79% the year prior.
“A successful energy transition is not impossible, but the urgency to accelerate action has never been greater,” said Ditlev Engel, CEO of Energy Systems at DNV. “The path to a cleaner, more sustainable energy future is inherently complex and uneven, but delay is not an option.”
The survey highlighted growing concerns over social and economic impacts of the transition. More than half of respondents (51%) believe the shift to clean energy could negatively affect certain communities through job displacement, cost barriers, or uneven access to technologies.
In response, industry professionals stressed the need for affordable and accessible clean energy solutions, supported by innovative financing models to ensure the transition delivers inclusive and equitable benefits.
The analysis also pointed to financial pressures, particularly in the renewables sector. Just 50% of respondents expect to meet revenue targets this year, while only 43% are optimistic about profit expectations—down sharply from 75% and 67% three years ago, respectively. Many companies are deferring investment decisions or pursuing smaller-scale projects, with only 39% in renewables expecting to increase investment in the coming year.
Despite the caution, digitalisation remains a priority. Around 59% of energy professionals plan to increase spending in digital technologies, including artificial intelligence, marking a consistent trend over the past four years. However, outdated power infrastructure continues to present a challenge, with 96% of power sector respondents calling for urgent grid modernisation.
“Geopolitical instability, including trade disputes and economic concerns, is pressuring global energy markets and causing uncertainty,” Engel added. “These challenges pose threats to progress and require strategic navigation.”
The report concludes that while the industry faces short-term headwinds, its commitment to building a resilient, low-carbon energy system remains firm.
